Not Every Call Needs a Frontier Model: Per-Call-Site Evaluation of Small Language Models in a Deployed Agentic Home-Automation System

Production agentic systems make many model calls per user request, and most of those calls are short, structured, and routine. This raises a practical routing question that existing evaluations do not directly answer: which parts of an agent workflow truly require large frontier intelligence, and which can be handled by smaller models? We introduce AgentFloor, a deterministic 30-task benchmark organized as a six-tier capability ladder, spanning instruction following, tool use, multi-step coordination, and long-horizon planning under persistent constraints. We evaluate 16 open-weight models, from 0.27B to 32B parameters, alongside GPT-5 across 16,542 scored runs. Our results reveal a clear boundary of model necessity. Small and mid-sized open-weight models are already sufficient for much of the short-horizon, structured tool use work that dominates real agent pipelines, and in aggregate, the strongest open-weight model matches GPT-5 on our benchmark while being substantially cheaper and faster to run. The gap appears most clearly on long-horizon planning tasks that require sustained coordination and reliable constraint tracking over many steps, where frontier models still hold an advantage, though neither side reaches strong reliability. We also find that this boundary is not explained by scale alone: some failures respond to targeted interventions, but the effects are model-specific rather than universal. These findings suggest a practical design principle for agentic systems: use smaller open-weight models for the broad base of routine actions, and reserve large frontier models for the narrower class of tasks that truly demand deeper planning and control. We release the benchmark, harness, sweep configurations, and full run corpus.

Large language models (LLMs) are often praised for exhibiting near-human performance on a wide range of tasks and valued for their ability to hold a general conversation. The rise of agentic AI systems is, however, ushering in a mass of applications in which language models perform a small number of specialized tasks repetitively and with little variation. Here we lay out the position that small language models (SLMs) are sufficiently powerful, inherently more suitable, and necessarily more economical for many invocations in agentic systems, and are therefore the future of agentic AI. Our argumentation is grounded in the current level of capabilities exhibited by SLMs, the common architectures of agentic systems, and the economy of LM deployment. We further argue that in situations where general-purpose conversational abilities are essential, heterogeneous agentic systems (i.e., agents invoking multiple different models) are the natural choice. We discuss the potential barriers for the adoption of SLMs in agentic systems and outline a general LLM-to-SLM agent conversion algorithm. Our position, formulated as a value statement, highlights the significance of the operational and economic impact even a partial shift from LLMs to SLMs is to have on the AI agent industry. We aim to stimulate the discussion on the effective use of AI resources and hope to advance the efforts to lower the costs of AI of the present day. Calling for both contributions to and critique of our position, we commit to publishing all such correspondence at https://research.nvidia.com/labs/lpr/slm-agents.

Multi-agent LLM pipeline systems break down the task among multiple roles for better reasoning, but are benchmarked mainly with large-scale commercial models. In this study, we investigate Parishad, a structured multi-agent system involving five roles, by deploying it on Qwen2.5-7B-Instruct, a local model, on two datasets: GSM8K (500 questions) and HumanEval (164 questions), compared with prompting directly and two-call self-refinement. The multi-agent system drops GSM8K accuracy from 75.0% to 45.0% with JSON data format due to the error accumulation problem. With plaintext format, the accuracy is restored to 82.0%. A two-call self-refinement strategy (V1) can achieve 86.2% accuracy on GSM8K, with 7.4$\times$ lower token usage. However, the same V1 implementation on HumanEval---where direct accuracy is already 96.3%---actively destroys performance (66.5%). A task-aware gated redesign (V2) applied to HumanEval preserves accuracy at 95.1%. Our results demonstrate that communication format and implementation details determine outcomes more than architectural complexity, and that simpler approaches match or outperform multi-agent pipelines for local 7B model deployment. All code and data are released.